China’s daily average crude steel output rose month-by-month during H1 2014, despite falling steel prices. During the first six months of the year, the daily average output stood at 2.2Mt. Total crude steel output for 2014 is estimated to be 828Mt.
Steel mills failing to meet local government environmental protection requirements were subject to higher power and water prices and this had an adverse effect on China’s smaller mills.
Some steel mills were forced to suspend production due to a sluggish steel market and tightened bank loans leading to bad debts.